Santander slashes mortgage rates after interest rates cut: Will you save on your mortgage?
Santander has confirmed that it will be passing on the full rate cut, reducing its Standard Variable Rate to 4.49 percent. It comes after the Bank of England cut its base rate 50 baiss points yesterday, from 0.75 to 0.25.
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The bank said that the 0.50 percent reduction will also be reflected across its products linked to base rate including its Follow-on Rate.
The changes will take place from the beginning of April.
Bradley Fordham, Head of Mortgages at Santander said: “Following yesterday’s announcement from the Bank of England of a reduction in base rate, we are pleased to be able to announce a cut in our SVR from the beginning of April.
“We will be reviewing other rates in the light of the current climate.
“Any changes we make will be communicated to customers and we will focus on continuing to offer our customers long term value through the range of products and benefits we provide.”
Yesterday, the Bank’s Monetary Policy Committee said: “Although the magnitude of the economic shock from Covid-19 is highly uncertain, activity is likely to weaken materially in the United Kingdom over the coming months.
“Temporary, but significant, disruptions to supply chains and weaker activity could challenge cash flows and increase demand for short-term credit from households and for working capital from companies.
“Such issues are likely to be most acute for smaller businesses. This economic shock will affect both demand and supply in the economy.”
As of 9am on March 11, 2020, 456 people have tested positive for coronavirus in the UK, Public Health England confirmed.
Among these patients, six people who tested positive for COVID-19 have died.
Today, Martin Lewis told ITV viewers what the Bank of England decision means for savers and borrowers.
During his segment on Good Morning Britain, he said: “On interest rates, mortgages – variable and tracker rates, they’re going to get cheaper by about £30 a month. That’ll factor in.
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“If you’re looking to remortgage, a couple of weeks would be a very good time.”
However, it may be less good news for some savers, as the Money Saving Expert founder warned.
“Savers, it’s an absolute blooming nightmare for,” he warned.
“If you’ve got savings now, when they launch fixed rate savings, where you can lock your money in for a year, they launch them in tranches.
“What that means, is something like they say let’s get £10million in and then we’ll launch a new one.
“Well there’s a couple of the ones from yesterday still around that have decent rates that haven’t sold out their £10million yet.
“If you can lock your money in one of those now before the rates drop, you might just beat the cusp of this.”
Good Morning Britain airs weekdays from 6am; This Morning airs weekdays from 10am.
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